The House Finance Committee reported a couple of helpful bills on January 29.
HB 119 (Thomas) creates a separate class of merchants’ capital for certain wholesaler inventory, which would allow localities that impose a merchants’ capital tax to impose a lower tax rate on that inventory.
HB 495 (Hodges) allows local commissioners of the revenue, treasurers, and directors of finance (in those localities that have abolished the offices of commissioner and treasurer) to disclose tax information to third-party contractors (other than outside auditors), who would be prohibited from further disclosure of the information. The bill largely grants localities the same authority as that currently afforded to the state Department of Taxation and will be helpful for those localities undertaking projects, such as IT upgrades, that require outside expertise.
VACo Contact: Katie Boyle